Economics · Inventory Management - EOQ
Wilson's Economic Order Quantity (EOQ) formula is based on all of the following assumptions EXCEPT:
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- 1Demand and production schedule are uniform throughout the year
- 2Inventory holding cost and ordering cost are constant
- 3Transportation cost per unit is variable and fluctuating✓
- 4Lead time is constant and known
Correct answer
Transportation cost per unit is variable and fluctuating
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